Shares of Dunkin’ Brands, the parent company behind Dunkin’ Donuts and Baskin-Robbins Ice Cream are higher by almost 2% on Monday after receiving an upgrade from RBC Capital Markets.
RBC analyst David Palmer upgraded shares to “Outperform” from a “Sector Perform” and raised his price target on the stock from $54 to $64, implying an upside of 12.5%.
“We believe the company is taking steps to improve franchisee profitability and core customer satisfaction,” Palmer wrote. “In our view, this will ultimately stabilize and potentially reaccelerate franchised revenue growth. In addition, we believe improving growth and the opportunity for significant cash back to shareholders can help Dunkin’ close its valuation gap to peers.”
Shares of Dunkin’ tumbled by about 30% in mid-2015 as Dunkin’ failed to keep up with growing competition in the coffee space from competitors such as McDonald’s and 7-Eleven. Since 2016, shares have bounced back…